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Regardless of industry, small businesses encounter a variety of risks in their everyday operations. These exposures can lead to significant financial losses, making it crucial to secure tailored insurance policies. However, there is no one-size-fits-all solution for all organizations; risk profiles vary widely, and several factors affect insurance costs. Understanding these influences is essential for small business owners to make informed decisions when building their insurance portfolios. This article outlines seven key factors, offering valuable insights into how insurance costs are determined.

1. Types of Business and Industry

A business’s type and its industry can affect its insurance rates. For example, high-risk industries like construction or manufacturing tend to have higher premiums, while low-risk sectors like accounting or consulting will have lower premiums.

2. Business Location

Where a business is located impacts its insurance rates due to region-specific risks, such as natural disasters and crime. Additionally, state and local regulations may require specific insurance coverage, ultimately influencing insurance costs.

3. Coverage Types

Various types of insurance are needed for different businesses based on their specific risks. While most require common coverage types, such as general liability insurance and commercial property insurance, others may need specialized policies due to the nature of their business. For instance, a business with goods in transit may need inland marine insurance, whereas others may not. These different coverage needs impact overall insurance costs.

4. Policy Limits and Deductibles

Limits are the maximum amount an insurer will pay for a claim, and deductibles are the amount an insured business is responsible for paying before the insurance company pays the claim. Both limits and deductibles affect costs. Higher limits increase coverage but raise premiums, while higher deductibles lower premiums but increase the business’s out-of-pocket costs in the event of a claim.

5. Business Size

Insurers calculate premiums using metrics such as employee count, payroll, revenue and assets. Generally, larger businesses will be more expensive to insure because they have more exposures that can lead to claims (e.g., more employees that can be injured, more property that can be damaged and higher losses during business interruptions).

6. Claims History

A business with a history of claims is perceived as riskier, often resulting in higher premiums, and can even affect a business’s eligibility for specific policies. Conversely, businesses with fewer claims and good risk management practices can benefit from lower insurance costs.

7. Experience and Track Record

A small business owner’s experience can impact insurance confidence and premium pricing. Typically, an insurer will view a business with longevity as an indication that the business is inclined to operate more safely, creating fewer claims.

Small business owners should evaluate their insurance needs carefully, manage risk proactively and consult with a knowledgeable insurance agent for the best coverage at an affordable rate. For more information about your Small Business Coverage, contact us at feedback@dimondbros.com for more information or connect with your local Dimond Bros. team member. 

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

All employers with one or more Illinois employees must either adopt the Illinois Department of Human Rights’ (IDHR) model sexual harassment prevention training program or use a different program that meets or exceeds the model’s minimum standards. Dimond Bros. can provide access to their clients and employees an approved training module and platform. The training must be given to all employees annually and to new employees as soon as possible after hire (but not later than Dec. 31 of the year they were hired) and include, at a minimum:

• An explanation of sexual harassment under Illinois law
• An explanation of conduct that constitutes unlawful sexual harassment
• A summary of relevant federal and state statutory provisions concerning sexual harassment, including remedies available to victims of sexual harassment
• A summary of responsibilities of employers in the prevention, investigation and corrective measures of sexual harassment

Employers must also keep a record of all trainings they provide. These records, which may be in the form of written or electronic certificates, signed employee acknowledgements or course sign-in worksheets, must be available for IDHR inspection upon request. Please note: Restaurants, bars, hotels, and casinos in the state are subject to additional training requirements.

If you are in need of an approved Illinois Sexual Harassment Training program please contact your Dimond Bros. representative today to be set up.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

Floods impact thousands of U.S. homeowners every year and inflict billions of dollars in property damage. Unfortunately, many homeowners don’t realize that standard home insurance doesn’t cover floods. That’s why having adequate flood insurance coverage should be considered a top priority for anyone with a home, as floods can happen anywhere.

However, even after you’ve secured the right flood insurance, navigating the claims process following an incident can be a complicated task. This article outlines general steps to consider when submitting a flood insurance claim.

How to File a Flood Insurance Claim

After a flood inflicts losses on you and your property, you should be prompt in beginning the claims process. Consider the following steps:

• Make contact. Reach out to your insurance agent or carrier as soon as possible. If you have coverage through the National Flood Insurance Program, you can call 877-336-2627 for help finding the necessary contact information.
• Document losses. Take photos and videos of damaged items, including the structural elements of your home and possessions. Be sure to thoroughly document items that must be discarded. This evidence should include serial numbers of larger appliances and receipts for damaged items. Additionally, hold on to samples of carpeting, wallpaper, furniture and other materials damaged by floodwater.
• Discard flooded items that pose health risks. After documenting damaged items, discard those that might cause harm, such as perishable foods and soaked pillows. It’s crucial to take steps to limit mold growth.
• Prepare for inspection. After filing a claim, your case will be assigned to an adjuster. This party will make an appointment to inspect your property and losses.
• Meet with your adjuster. Be sure to verify your adjuster’s identity and qualifications upon their arrival and document their contact information. They should provide you with essential information on the claims process, discuss the specific details of your coverage and answer your questions.
• Seek repair estimates. When searching for assistance with repairs, such as your home’s electrical and plumbing systems, be sure to speak with your insurance representative before entering into a formal agreement. Additionally, take care to verify any contractors you may work with are licensed, bonded and insured.
• Await payout. Based on their findings, your insurance adjuster will make a recommendation regarding your claim. Scrutinize any offers to ensure estimates are accurate and complete. You will be asked to sign a proof of loss document at this time, which allows you to begin receiving aid for agreed losses but does not prevent you from requesting additional funds at a later date.
• Contest decisions (if necessary). If your claim is denied or you disagree with the insurer’s offer, you should first work with them to attempt to find a solution. If unsuccessful, you can also contact the Federal Emergency Management Agency within 60 days or file a lawsuit within one year of your denial. Should you and your insurance company disagree on the value of your losses, you may seek an appraisal to resolve the dispute.

For More Information

The flood insurance claims process can be nuanced, complex and even confusing. But by knowing what to expect ahead of time, you may be better equipped to handle the aftermath of potentially catastrophic losses with limited stress. For more information about this type of coverage or filing a claim against your policy, contact us at feedback@dimondbros.com for more information or connect with your local Dimond Bros. team member. 

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

While preparing your Thanksgiving turkey in a turkey fryer can be a timeless tradition, it’s important to keep cooking safety measures in mind to protect yourself, your guests and your home. After all, the U.S. Fire Administration states that Thanksgiving is the peak day for home cooking fires.

Don’t let your next holiday gathering become another statistic. Use this guidance to ensure turkey fryer safety and enjoy a stress-free Thanksgiving.

As with any cooking tool, it’s important to take caution when using a turkey fryer, as it can be extremely dangerous. Here are some tips to consider when frying a turkey:

• Stay in the area where you are cooking. Leaving the turkey unattended may cause the fryer to overheat, resulting in a fire.
• Use your turkey fryer on a level surface. Anything that might cause the fryer to tip over may result in a hot oil spill.
• Thaw your turkey before cooking. Water from a still-frozen turkey can cause the oil to bubble or splash over the pot.
• Keep small children and animals away from the fryer while it is in use. There is a great risk that a child or pet could run into the fryer, knocking it down and causing serious injury. A safe distance of three to 10 feet away is recommended.
• Have safety equipment ready. Use oven mitts, goggles and an apron while cooking. Have a fire extinguisher nearby in case of emergency, and keep flammable items away from the fryer.

Keep it Outdoors

For your safety, only use a turkey fryer outside and away from your home. Never use a turkey fryer in a garage or on a porch. Also, be sure to keep some distance between yourself and the fryer as you monitor it—you wouldn’t want to accidentally get splashed with hot oil.

For more home safety guidance and homeowners insurance solutions, contact us today.

Insurance plays a crucial role in your life’s financial security and stability. The various policies and coverages that make up your insurance portfolio can potentially ensure you’re able to endure accidents, natural disasters and unexpected circumstances that might otherwise incur devastating financial losses. These risks may be particularly prevalent for those who fail to identify and address common coverage gaps.

This article can help you understand how and why specific gaps in your insurance could have significant financial ramifications for you and your family. Dimond Bros. Insurance is focused on assisting you in not only identifying and understanding these possible pitfalls but also filling them and ensuring that your personal lines insurance portfolio offers fortified financial protection.

Common Personal Insurance Gaps

Your personal lines insurance portfolio may consist of several types of policies, each covering risks and exposures that might otherwise lead to significant financial losses. Despite how you may have assembled an appropriate collection of policies, each one might still be prone to having coverage gaps that could leave you vulnerable to unexpected situations. The aftermath of an accident or other losses is the worst time to realize you’re underinsured, so it’s essential to identify and address gaps before coverage is needed.

Consider the following common personal insurance coverage gaps:

• Home insurance—Also known as homeowners insurance, this type of policy can be rife with coverage gaps if you’re not careful and do not work with a qualified professional. Be particularly mindful of the following possible gaps: Natural disaster exclusions—Certain natural disasters are often explicitly excluded from standard home insurance policies. For example, flood insurance must typically be purchased separately. Homeowners in certain parts of the country may also need coverage for earthquakes and windstorms.

• Coming up short of the 80% rule—Insurance carriers typically enforce the 80% rule, which states that homeowners must retain enough coverage to pay for at least 80% of the estimated cost of a complete rebuild of their home. Failing to do this could lead to lesser payouts following covered losses.

• Neglecting scheduled property coverage—Home insurance typically includes some coverage for personal possessions, but limits are often insufficient for those with significant valuables, such as fine art and jewelry. Additional coverage options, such as scheduled property coverage, may be necessary to ensure policyholders can recoup losses involving treasured items.

Auto insurance—These policies may also be referred to as car insurance and are often legally required. Still, while one of the most commonly purchased types of insurance, auto coverage is easily misunderstood, necessitating awareness of the following possible errors: Fulfilling only minimum requirements—While most states require motorists to carry certain levels of coverage, such as third-party liability coverage, simply complying with such mandates may not be enough. For example, many states do not require collision coverage, but if you crash your car, this part of a policy could be critical in ensuring you can repair or replace your vehicle.

Lacking gap coverage—Aptly named, lacking this component of an auto insurance policy could represent a significant hole in your coverage. Gap coverage can be critical in offsetting losses if you’ve financed your vehicle. If your car is totaled or stolen and you still owe more on your loan than the vehicle’s current value, this coverage can make up the difference and limit out-of-pocket losses.

Life insurance—The right life insurance policy can provide financial stability and peace of mind for you and your loved ones. However, insufficient or outdated coverage could have dire ramifications, exacerbating the already difficult circumstances of a grieving family. Avoid this hardship by considering the following potential shortcomings in your coverage:

• Relying on group coverage—Life insurance offered by an employer can be a valuable employee benefit; however, one should not depend on this as your only form of coverage. Group life insurance plans are typically tied to employment status, meaning that being let go or retiring would result in no remaining coverage.
• Insufficient limits—As a person’s circumstances change, they may need to adjust their life insurance policies. For example, having a child or gaining a dependent typically increases expected expenses. Without making adjustments to life insurance, payouts could be insufficient to provide for a deceased’s family.

Personal umbrella insurance—This type of insurance may not be as well known as others, but for many people, it can be just as important. An umbrella insurance policy casts an additional layer of financial protection over various liabilities that might exceed the coverage limits in other policies. Consider how personal umbrella insurance might help fill the following coverage gaps: Inadequate auto insurance—Even if you’ve fulfilled your auto insurance policy’s minimum liability coverage requirements, severe accidents could have greater costs. If several people are severely injured, many vehicles are damaged or losses otherwise amount to a sum greater than your auto coverage can handle, personal umbrella insurance can offer additional aid and limit out-of-pocket losses.

Insufficient home insurance—Certain accidents and other incidents at your home could be exceptionally costly. For instance, if your home has attractive nuisances, such as a swimming pool, or you regularly host large gatherings, accidents affecting multiple guests or inflicting significant injuries could quickly exhaust the liability coverage limits in your home insurance policy. Without umbrella coverage, you’d be saddled with paying the remainder out of pocket.

How to Avoid Coverage Gaps

Now that you have a better understanding of common coverage gaps and the potential consequences of being underinsured, you can take steps to shore up your insurance portfolio. Consider the following steps:

Appraise your belongings. One of the most effective ways to ensure you’re adequately covered is by being current on the value of what you’re insuring. Save receipts and document the condition of your possessions, and consider enlisting the assistance of professionals to appraise certain items, such as fine art and jewelry.

Assess liability risks. Whether considering home, renters, auto or umbrella coverage, certain policyholders may need to manage greater liability risk levels. For example, if you have children or pets, you may want to retain more coverage in your home insurance policy. Similarly, additional financial security may be advisable if you have a teen driver listed on your policy.

Consider recent life events. When your circumstances change, you should revisit your insurance policies. Getting married, having a child, buying a home or car, or moving should all trigger this process. Neglecting to account for life events in your insurance portfolio could lead to you being underinsured and your policies’ limits being incapable of covering losses.

Understand endorsements and options. Familiarize yourself with all of the features and enhancements that might be available. While a standard home insurance policy may be sufficient most of the time, specific exclusions, such as for floods and hurricanes, could mean the difference between weathering a financial storm alone or being buoyed by financial aid.

Enlist assistance. The knowledge and experience of a qualified insurance professional can be invaluable as you seek to purchase or reassess the components of your personal lines coverage.

Get the Right Coverage

In the wake of an accident, damage to your home or other incident involving financial losses, the last thing you want to hear is that your insurance isn’t capable of what you expected. Coverage gaps can quickly lead to unexpected expenses, potentially incurring far-reaching fiscal consequences that might upend your entire life.

At Dimond Bros. Insurance, we’re committed to making sure that you and your family are adequately insured. Contact us today to learn more about personal lines coverage options and to ensure you’ve identified and remedied any coverage gaps. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice

The construction industry is continuously moving toward digitization, adopting advanced technology such as artificial intelligence, the Internet of Things (IoT) and Building Information Modeling software. These innovations help to automate tasks, reduce waste and improve efficiency, productivity and safety.

However, this shift also brings significant cybersecurity risks. As construction companies increasingly rely on digital tools and store large amounts of sensitive data, cybercriminals increasingly view them as attractive targets. As a result, construction businesses must take action to protect sensitive information from data breaches and other cybersecurity incidents that can create financial hardship and reputational damage.

This article outlines why cybercriminals target the construction industry, discusses examples of common types of cyber attacks and why they are utilized, and provides cybersecurity best practices. It also examines the role of cyber insurance in mitigating cyber risks.

Why Cybercriminals Target the Construction Industry

There are several reasons why the construction industry is an appealing target for cybercriminals, including:

High-value transactions—Construction projects often involve significant financial transactions, making them attractive targets for ransomware, phishing attacks and financial fraud. The high value of these transactions can incentivize cybercriminals to attempt fraudulent payments or extortion.

An abundance of sensitive data—Construction companies manage sensitive data like blueprints, architectural designs, bids, contracts, and employee and client information. This data is valuable to cybercriminals, who can exploit it for financial gain through data breaches or sell it on the dark web.

Complex supply chains—With multiple stakeholders and subcontractors involved in construction industry supply chains, each with potentially varying levels of cybersecurity maturity, the odds of network vulnerabilities increase. Malicious actors may target these weak links in the supply chain, as they may serve as potential access points for cyberattacks.

Outdated cybersecurity measures—Many construction firms rely on legacy systems or outdated software that does not provide adequate protection against modern cyberthreats. These weaknesses present attractive opportunities for intrusion by hackers, who often seek out older systems that have known vulnerabilities and are easier to exploit.

Increasing adoption of digital technologies—The digital attack surface has expanded with the construction industry’s increasing use of digital technologies (e.g., IoT, remote project management, cloud storage). Although improving efficiency, these technologies have created more chances for malicious actors to infiltrate networks, especially.

 Common Cyberattacks and Why They Are Utilized

There are many types of cyberattacks; the following are commonly used against the construction industry for various reasons:

Ransomware attacks occur when cybercriminals gain access to a business’s computer system, encrypt the files and demand payment in exchange for providing a decryption key. This attack can be effective against construction companies because projects often have strict deadlines, making business interruptions extremely costly and prompting targets to pay the ransom quickly in an attempt to avoid further losses.

Phishing attacks involve malicious actors tricking users into providing sensitive information (e.g., passwords) through fraudulent emails, text, calls, websites or links. Construction firms often employ temporary staff and subcontractors who may not be familiar with a company’s internal communications. This makes phishing attacks especially effective, as cybercriminals can exploit this unfamiliarity and trick targets into revealing sensitive information or clicking on malicious links.

Business email compromise (BEC) occurs when a malicious actor impersonates a legitimate individual (e.g., a CEO or in-house counsel) or hacks into that person’s email account and fraudulently requests money or sensitive information. BEC scams are used against construction companies because large amounts of money and sensitive data often move between project stakeholders, so these requests may not raise a red flag and can go unnoticed.

Supply chain attacks happen when a cybercriminal infiltrates a business’s supply chain. Construction companies often rely on multiple subcontractors and third-party vendors, which increases the potential for cybercriminals to target less secure partners. Once a third-party vendor’s system is breached, attackers can enter into the main company’s network, compromising sensitive data.

Distributed denial-of-service (DDoS) attacks are when cybercriminals overload a business’s network with traffic, disrupting standard operations or causing a network outage, leading to costly project delays. The cybercriminals can then leverage the interruption to extort a ransom from construction companies in exchange for ending the DDoS attack.

CyberSecurity Best Practices for the Construction Industry

Although cyber threats are numerous and evolving, there are several measures construction businesses can take to safeguard computer systems and networks:

Employee training and awareness programs allow employees to educate their workers on cyberthreats. They also allow discussion on combating cyber risks by following the organization’s cybersecurity policies and procedures.

Multifactor authentication can add additional layers of protection through authenticators, such as one-time passcode for time-sensitive links, before a user can access a company’s network or system.

Regular software updates and patch management can ensure software programs are best positioned to defend against the latest cyberthreats.

Network segmentation divides a network into smaller parts so that if it is infiltrated, there will be security barriers to prevent lateral movement across the network.

Access controls limit who can view or access sensitive information and the situations when they may do so.

Data encryption transforms data into an unreadable, encoded format so malicious actors cannot decipher it without the correct key.

Data backup and recovery systems allow businesses to quickly recuperate after cyberattacks (e.g., ransomware or DDoS attacks) because their data is stored in another place (e.g., external hard drives or a cloud) and can be quickly reloaded onto systems to minimize downtime.

Vendor and supply chain management ensures companies select and work with vendors with strong cybersecurity practices. By carefully vetting partners, construction companies can reduce the risk of supply chain attacks.

Incident response planning and testing allow construction firms to proactively build their cyber defenses by having policies and procedures to respond to cyberattacks and test their systems to find and repair weaknesses.

The Role of Cyber Insurance in Mitigating Risk

Even with a robust cybersecurity defense, no system is immune to attacks. Cyber insurance helps mitigate exposure to cyber-related losses, filling gaps that may be left by other policies (e.g., commercial property insurance, general liability insurance.), which typically do not cover cyber-related events. It is specifically designed to cover business interruption and other financial losses that result from cybersecurity incidents, such as data breaches and ransomware attacks.

Many cyber insurance policies provide access to a vendor panel that include legal counsel, public relations firms, IT specialists and other experts who are experienced in managing cyber incidents. This can help businesses respond quickly and effectively mitigate the impact of a cyberattack on operations, reputation and finances. Since cyber insurance policies vary in coverage, limits and exclusions, it is advisable to consult a licensed insurance professional for assistance in selecting a policy that best suits a construction business’s needs.

Conclusion

Cyberattacks are a serious threat to the construction industry. Cybercriminals can utilize many methods to steal data or disrupt computer networks for financial gain. Strong cybersecurity practices with the proper cyber insurance policy are essential to address this risk. By being proactive, businesses can mitigate this exposure and safeguard their finances and reputations.

Contact us at feedback@dimondbros.com for more information or connect with your local Dimond Bros. team member. 

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.